Hiring corporate solicitors is often an ignored issue on a small business owner’s never-ending, sleep-deprived to-do list.
When time and money are the driving forces behind everything you do, the money-making activities normally take precedence over everything else. It’s tempting to believe that because your company is small, you won’t come into any major legal issues. Unfortunately, this is not the case.
Obtaining top quality legal advice is critical at every step of a business’s lifecycle to prevent risks to both you and your business. Getting legal guidance from the start will benefit your company’s health and increase your prospects of a successful exit in the future (in the event that you plan on selling your business further down the line).
Getting legal guidance from the start will benefit your company’s health and increase your prospects of a successful exit in the future (in the event that you plan on selling your business further down the line). We have listed a few important areas where consulting with a corporate and commercial lawyer would be beneficial:
Funding
If you borrow money from a bank, the terms of the loan may be complicated. The applicable bank may also require you to give a personal guarantee, under which you will be held liable for your company’s debts. This can have major financial ramifications. A corporate lawyer may go through the loan terms with you and give you practical assistance to ensure you completely comprehend the agreement you’re signing.
Even if you are being sponsored by friends and family, it is critical to document the details of any financial relationships. Circumstances and plans can both change. If both parties can then refer to a formal agreement outlining the major provisions, the danger of misunderstanding or conflict will be reduced.
Structuring Options
The best structure for your company is determined by its size, complexity, and goals. A corporate lawyer may advise you on the numerous legal elements of the various corporate structures (including a private limited company, a limited liability partnership, or another business structure) and which one is most suited for your organisation.
Trade Legally And Professionally
With ever-changing goal posts for UK firms, it is critical to examine your Terms and Conditions on a regular basis. Are you including any unfair or unenforceable clauses in your client and customer contracts? Are your contracts exposing you to wrongdoing and bad debts?
A stitch in time saves nine, or in business, a solicitor in time saves nine! Dealing with legal issues as they emerge is a difficult and inefficient way of functioning. Remember that legal issues are impediments to attracting new clients and can jeopardise existing client relationships.
Prepare Properly To Avoid Claims
We live in a world of compensation claims, and no matter what your company does, there may be a compliance liability lurking amongst your day-to-day job that could catch you off guard.
If you are unfamiliar with the legality of working online, even a website might be dangerous. One of the most neglected laws is adhering to EU Cookie Law; a little-known monster that could lead to a data protection disaster.
Having a corporate solicitor spend time with you will assist them in identifying any areas that may pose a risk to your business. A Legal Audit will ensure that you are in compliance with all current legislation, as well as enhance your awareness of your company’s legal duties.
Shareholders Agreements
Shareholders Agreements This document governs the interaction between shareholders, the company’s management, share ownership, and shareholder protection.
A dividend policy, method in the event of a deadlock, share value, and the procedure to be followed in respect to a proposed transfer of shares in the firm can all be included in the shareholders agreement.
A dividend policy, method in the event of a deadlock, share value, and the procedure to be followed in respect to a proposed transfer of shares in the firm can all be included in the shareholders agreement.
The absence of a shareholders’ agreement increases the likelihood of future disagreements and conflict, which could have been resolved using the agreed-upon methods outlined in a formal shareholders’ agreement.
Terms and Conditions
A company’s terms and conditions are its first line of defence in the event of a dispute. Terms and conditions should be written to meet the specific needs of the specific business at the moment. They are far too critical for a company to rely on free templates.
A commercial lawyer can assist in the creation of a company’s terms and conditions in accordance with the needs of the business, with the goal of accurately documenting each party’s rights and obligations, transferring risk, and limiting responsibility in the event of a disagreement.
A commercial lawyer can assist in the creation of a company’s terms and conditions in accordance with the needs of the business, with the goal of accurately documenting each party’s rights and obligations, transferring risk, and limiting responsibility in the event of a disagreement.
Data Protection
The Data Protection Act (DPA) 2018 incorporating the General Data Protection Regulation (GDPR), requires enterprises to not only adhere to the GDPR’s seven fundamental principles, but also to demonstrate compliance through documented policies and processes. As a business, you will almost certainly be processing personal data, such as that of your customers or workers.
The personal data collected and processed by your business, as well as the data security measures required, will be determined by the nature of your business. Again, templates are available online, but it is debatable if they are appropriate for a growing firm as it becomes more complex and valuable.
Other aspects of data protection to consider include: registration with the Information Commissioner’s Office and payment of fees; applicable exemptions; mapping the life-cycle and risks of personal data; and the legal basis on which you send personal data to third parties, such as a supplier located outside of the UK.
If you need to find a commercial solicitor then Mishoura can help you. We match you and your business to qualified, industry experienced corporate lawyers in your area. After an initial consultation where our team of business advisors will run through what you are looking for; we will be able to provide you with details of 2 firms of commercial law solicitors in your area.
Written By – Omar Shams
